Right to Work Checks: What Employers Must Do

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Once you put someone on the books, you're not just "a bloke with a helper" any more. You're an employer in the eyes of the law, with a list of boxes you must tick.

1. Decide if they're really an employee

Before anything else, work out what this person actually is:

• Use HMRC/employment status guidance to decide if they're an employee, worker or genuinely self-employed.
• If you control their hours, supply the kit, and they can't send someone else in their place, they're likely an employee, not a subbie.
• If they're an employee, the rest of this checklist applies.

2. Right to work and basic checks

You must check they're allowed to work in the UK before they start:

• Check original documents or use the Home Office online right-to-work check if they give you a share code.
• Take and keep copies as proof.
• Get references and any job-specific tickets (CSCS, driving licence, plant tickets) as needed.

3. Register as an employer and set up PAYE

You need to tell HMRC you're now an employer and set up payroll:

• Register as an employer before the first payday (you can do it online, up to 2 months in advance).
• HMRC will send you a PAYE reference and Accounts Office reference -- keep these safe; you need them for payroll and payments.
• Set up payroll (software or accountant) to:
  • Calculate gross pay.
  • Deduct Income Tax and National Insurance under PAYE.
  • Report to HMRC every payday (RTI submissions).

If they're over the PAYE thresholds, you can't just "pay cash" and forget about it.

4. Employers' liability insurance

As soon as you employ anyone, you normally need employers' liability (EL) insurance:

• It protects you if an employee is injured or made ill at work and sues.
• Law usually requires at least £5 million cover from an authorised insurer.
• There are limited exceptions for certain family-member setups, but in construction you should assume you need it.
• Your EL certificate must be available for staff to see (on the wall or digitally).

5. Written statement / contract (Employment Rights Act 1996)

Legally, you must give employees written particulars of their job.

A section 1 statement (key employment particulars) is now a "day 1" right -- they should get it at the start of employment.

In practice, wrap this into a simple written contract of employment covering:

• Job title and duties.
• Start date and, if fixed-term, end date.
• Place of work (including site-working expectations).
• Hours and working pattern.
• Pay rate, overtime, how and when paid.
• Holiday entitlement and bank holidays.
• Sick pay basics.
• Notice periods.
• Probation period.
• Any key policies they must follow.

Get them to sign and keep a copy on file.

6. Paying them correctly (minimum wage, payslips, holiday)

Once they're on the books, you must:

• Pay at least the National Minimum / Living Wage for all hours worked.
• Give them a payslip every pay period showing gross, deductions and net pay.
• Give at least statutory holiday (currently 5.6 weeks per year for a full-timer, pro-rata for part-time).
• Follow basic working time rules (rest breaks, maximum average weekly hours unless they opt out).

These are core Employment Rights Act basics -- they're not optional.

7. Auto-enrolment pension duties

Under auto-enrolment law, every employer has pension duties from day one:

• You must assess the worker's age and earnings.
• If they're an eligible jobholder, you must automatically put them into a workplace pension and pay contributions.
• Minimum contributions currently: around 3% employer, 5% employee on qualifying earnings.
• You need to complete a declaration of compliance with The Pensions Regulator and keep up with re-enrolment every 3 years.

Even with one employee, you can't ignore auto-enrolment.

8. Health and safety duties as an employer

Bringing someone onto site ramps up your H&S responsibilities:

• You must provide a safe working environment, suitable PPE, and training/instruction for the tasks they'll be doing.
• Do risk assessments for the work they'll carry out and brief them on method statements/toolbox talks.
• Once you reach 5 or more employees, you'll legally need a written health and safety policy and written risk assessments (see 8.11).
• Even with one person, the HSE will expect you to take this seriously if there's an accident.

9. Records you must keep

Keep a simple personnel file with:

• Copy of right-to-work checks and ID.
• Signed contract/section 1 statement.
• Emergency contact details.
• Pay records, payslips, tax and NI deductions.
• Holiday and sickness records.
• Training and qualifications (CSCS, plant tickets, H&S training).

HMRC and employment law both expect you to be able to prove what you've done if there's a dispute or audit.

10. Who to contact

• Register as an employer (PAYE) -- GOV.UK step-by-step: gov.uk/register-employer (free)
• HMRC employer helpline -- 0300 200 3200 (free)
• HMRC employment status checker -- check if someone is employed or self-employed: gov.uk/check-employment-status-for-tax (free)
• Right to work checks -- Home Office guidance: gov.uk/check-job-applicant-right-to-work (free)
• ACAS -- employment rights, contracts, and dispute advice: 0300 123 1100 (free)
• The Pensions Regulator -- auto-enrolment duties and tools: thepensionsregulator.gov.uk (free)
• HSE -- employer health and safety duties: hse.gov.uk (free)
• National Minimum Wage rates -- current rates on GOV.UK: gov.uk/national-minimum-wage-rates (free)
• Employers' liability insurance -- guidance on legal requirement: gov.uk/employers-liability-insurance (free)

11. Sources and legislation

• Employment Rights Act 1996 -- section 1 (written statement of particulars), sections 13-27 (wages protection), section 86 (notice periods). legislation.gov.uk/ukpga/1996/18
• National Minimum Wage Act 1998 -- minimum pay requirements. legislation.gov.uk/ukpga/1998/39
• Working Time Regulations 1998 -- holiday entitlement, rest breaks, maximum hours. legislation.gov.uk/uksi/1998/1833
• Employers' Liability (Compulsory Insurance) Act 1969 -- requirement for EL insurance. legislation.gov.uk/ukpga/1969/57
• Pensions Act 2008 -- auto-enrolment duties for employers. legislation.gov.uk/ukpga/2008/30
• Health and Safety at Work etc. Act 1974 -- employer duties for safe workplace. legislation.gov.uk/ukpga/1974/37
• Immigration, Asylum and Nationality Act 2006 -- right to work checks and penalties. legislation.gov.uk/ukpga/2006/13
• Income Tax (Earnings and Pensions) Act 2003 -- PAYE framework. legislation.gov.uk/ukpga/2003/1

12. Related guides on this site

• 8.3 Business bank account -- why you need a separate one
• 8.4 Registering for CIS as a contractor (not just a subbie)
• 8.11 Health and safety policy -- when you need a written one
• 8.12 GDPR for builders -- what you actually need to do
• 6.1 Public liability insurance
• 6.2 Employers' liability insurance
• S7 Self-employed vs employed -- know what you actually are
• S19 Your rights in the first 2 years of employment
• 3.1 Employment status in construction -- why it matters

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